Calgary Real Estate Market Update - November Numbers are Released

The November 2011 CREB Market stats were officially released yesterday to no great surprise. Things are chugging along with no large scale changes from the past few months. There was an increase in November sales to last year by 8% along with a 2% reduction in listings compared to last year, but although it is great to see those numbers moving in the right direction we remain at overall flat pricing compared to last year as well as overall slower market when looking at our 10 year average. Condos are also starting to see a growth trend. If this trend continues we will slowly start to see lower inventory levels with prices increasing. 
The future predictions for the market are all over the papers, economic reports and such and the vast majority are calling for a strengthening market with prices beginning to move up in either 2012 or 2013.  Timing and strength of change will depend in part on international factors. We won't know a shift has happened until the numbers are in and then it has already passed so timing the market will remain challenging as always. We aren't expecting huge sudden changes though so expect slow and steady shifts.

There are a few items of note from various investment and economic folks out there. The rental market has seen a change with a decrease in vacancies and the beginning of price increases. While people are taking longer to purchase right now, they are moving to Calgary and often look to rentals before purchasing. The changes to mortgage requirements for investors may be resulting in fewer investment properties coming on market and therefore renters may be in more competition for prime units. Our labour market numbers are good and Calgary again is a bright spot on the map.  As rental prices increase and interest rates remain at very low marks, we will begin to see folks running their numbers and looking to invest in a home instead. 

As always, feel free to contact me anytime to assist you with your sale or purchase.
Numbers of Note:
Calgary, December 1, 2011 – According to figures released today by CREB® (Calgary Real Estate Board), Calgary residential sales in November increased eight per cent over last year, at 17,538 after the first 11 months of the year.
While sales activity tends to taper off in the winter months, so far this year Calgary area sales remain significantly stronger than levels recorded last year. Single family home sales totaled 962 for the month, an increase of eight per cent from November 2010. Meanwhile, year-to-date sales totaled 12,464, a 10 per cent increase over last year. Over the long term, however, sales remained a tepid 17 per cent below the 10 year average.
November listings have edged down over last year’s levels, decreasing by two per cent. Lower listings combined with the increase in sales helped reduce the months of inventory to less than four months.
The year-to-date average and median price of single family homes were a respective $467,140 and $406,500. Overall, prices remain relatively flat compared to last year.
Condominium sales for the first 11 months of the year totaled 5,074, a five per cent rise over the same period last year. Inventory levels declined to 1,676 units, helping push down the months of supply. 
“The rise in condominium sales can be attributed to the confidence in the market, and is typical of this phase of a normal market recovery,” says Stante.
Condominium year-to-date average and median prices in 2011 were $287,545 and $261,500, respectively, a decline over the first 11 months of 2010, mostly due to increased sales in units priced under $200,000.

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Data supplied by CREB®’s MLS® System. CREB® is the owner of the copyright in its MLS® System. The Listing data is deemed reliable but is not guaranteed accurate by CREB®.
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